Tax amnesty eyes for professionals

JAKARTA. The low public interest in joining tax amnesty during the first period has led government to formulate new strategies. Aside of improving communication strategy, the government plans to pursue professionals to participate in the program.

Minister of Finance Sri Mulyani said that to date the number of tax amnesty participants are lower than the expectations. In order to boost the number of tax amnesty participants, government will explore potentials participations of professionals, such as doctors, lawyers, accountants, appraisals, tax consultants, and architects. In addition to the professionals, state officials, as well as directors and commissioners of State Owned Enterprises (SOE) become part of the targets. “I ask Director General of Taxation to make the list”, said Sri Mulyani.

In referring to the list, Sri estimated that the tax amnesty program has not yet covers a number of professionals, as well as SOEs and government. For an example, the Directorate General of Taxation identified that the holders of 3,333 tax identification numbers (NPWP) have a profession as tax consultant. However, to date only 1,408 of the tax consultants have participated in the tax amnesty.

Meanwhile, the tax amnesty has just covered 28.16% of notaries participations, while the program just involved 9.32%, 5.34%, 13.96%, 21.43%, 20.59%, and 17.85% of lawyers, architects, accountants, appraisals, governor and vice governor, as well as SOEs directors, respectively. “I want to have confirmation whether those who have not involved tax amnesty have settled their tax obligation”, said Sri Mulyani.

Pursuing government officials

Sri is optimistic that the professionals and SOEs officials have potentials incomes or assets to declare. Let alone, the redemption fees in the second phase of the program are relatively low. The government imposes redemption fees of a 3% of net asset, or 1% higher than in the first phase of the program.

In order to attract professionals and SOEs officials, Directorate General of Taxation will conduct socialization of the program in October. Sri Mulyani said that the 3rd level or above government officials are subject to tax amnesty. It is expected that government officials participations will attract public involvement in the program.

In addition to pursuing government officials, government will also target prominent taxpayers at local and national levels. According to the Minister, government has the data of the number of assets of the tax payers.

In the first phase of the tax amnesty program, major taxpayers only comprised 2,272 taxpayers of 26,098 taxpayers, who are subject to declare the annual notification letter.

Furthermore, government will identify non-prominent taxpayers through the results of tax authority analysis, which compared the data on the number of vehicles, ships, properties, shares, bonds and others with the data of taxpayers’ annual notification letter.
Tax authority will also target micro, small, and medium enterprises by analyzing data of People’s Business Credit (KUR) recipients.

(MUHAMMAD FARID/Translator)